IMC

Report On

MAHINDRA REVA IMC PLANNING

Submitted By: Group 5

Marketing A (3rd Semester)

Abhishek Debnath

Akhil Sidana

Abhimanyu Jain

LakshithaKuppanda

Tata Ramcharan

Submitted To Prof. Sunil DAnto

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Sl No. Contents Page No.

1. Introduction 2

2. Situational Analysis 3

3. SWOT Analysis 5

4. Segmentation, Targeting and Positioning 6

5. Communication Objective 8

6. Selection of an Ad Agency 9

7. Creative Brief 10

8. Media Planning 13

9. Communication Budget 16

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1. Introduction:

Mahindra Reva Electric Vehicles Private Limited, formerly known as the Reva Electric Car

Company, is an Indian company based in Bangalore, involved in designing and manufacturing of

compact electric vehicles. The company's flagship vehicle is the Reva electric car, available in 26

countries with more than 4,000 of its different versions sold worldwide by mid-March 2011. Reva was

acquired by Indian conglomerate Mahindra & Mahindra in May 2010. In 2013, MAHINDRA REVA

was selected as one of "The Worlds 50 Most Innovative Companies 2013 by Fast Company

The Mahindra Reva E2O, previously REVA NXR, is an urban electric car hatchback manufactured

by Mahindra Reva Electric Vehicles. The e2o is the REVA G-Wiz successor and was developed using

Reva's technology, and has a range of 100 km (62 mi). The electric car was launched in India in March

2013 at a price between 6.5 lakh (US$11,900) to 8.5 lakh (US$15,670) depending on the city and

before any subsidy. Mahindra also plans to launch the e2o in the European market during the first

quarter of 2014.

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2. Situational Analysis:

Customers:

Current Customers:

Reva's current customers are old couples and housewives, since it doesn't have any gears it is easy for

them to operate the car.

Former Customers:

Customers are dissatisfied about the Revas service and performance and therefore shifted to other

brands, since there are no proper service centres and charging stations.

Potential Customers:

We are targeting working professionals and position this as youthful car and therefore the potential

customers are the working professionals.

Competitors Customers:

Customers of competitors are the one who are choosing the cars based upon the price, they are choosing

the other brand cars looking into the high price of the Reva.

Competitors:

We have categorised competitors of Reva based upon the price, since they had no direct competition

in electric car segment. The following are the competitors of Reva based on price factor.

Maruti Suzuki Ritz

Hyundai Grand i10

Premier Rio

Toyota EtiosLiva

Tata Zest

Maruti Suzuki Swift

Renault Pulse

Toyota EtiosLiva

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Since Reva also had its presence in foreign markets, its competitors based upon the segment are as

follows:

Tesla Model S

BMW i3

Chevrolet Spark

Nissan Leaf

Mercedes-Benz E-Class Electric Drive

Fiat 500e

Smart For Two Coupe

Mitsubishi i-MiEv

Focus Electric

Communications:

This talks about the current communication strategies used by Mahindra Reva. Reva uses its own portal

to reach the customers where customers can login and update their credentials regarding the car and

this website also contains the number of miles driven using Reva cars and total fuel saved till date. It

also provides data of the charging stations and other relevant information about the usage of the car

and benefits of using Reva.

Mahindra Reva Electric Vehicles Pvt. Ltd. and Vodafone Business Services, one of India's leading

telecommunication service providers have entered into a strategic technology partnership. The

partnership enabled Vodafone to provide Machine- to- Machine (m2m) communication services to

power the recently launched electric vehicle, Mahindra e20 and is first of its kind in India. Using

this one can know the battery levels of the car and operate some features of the car remotely.

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3. SWOT Analysis:

Internal

Strengths:

1. Less operating costs

2. Suitable for Indian roads

3. Green car

4. User friendly

Weaknesses:

1. High price

2. Low mileage

3. Low speed

External

Opportunities:

1. High potential Market for

electric cars

2. Subsidies from Government

accelerates sales

Threats:

1. Other brands coming up

with electric cars

2. Newer technologies that are

more efficient than electric

cars may prove to be threat

3. Other alternate sources of

fuel like LPG cars also

competes with electric cars

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4. Segmentation, Targeting and Positioning

This is one of the most important phases of the IMC Planning. It is of utmost importance to find out

the possible segments from the entire population, then target the appropriate segments and finally

position the product in their mind.

Segmentation:

The following segmentation methods have been used to segment the market.

Demographic Segmentation:

Demographic segmentation has been done on the basis of -

a.) Gender: Both men and women will be targeted

b.) Age: Three age categories have been identified:

Between 25- 35 years

Between 36-50 years

Between 51-65 years

c.) Income: Three income categories have also been identified:

Between 5 10 lacs per annum

Between 6 12 lacs per annum

Between 6 15 lacs per annum

Geographic Segmentation:

Since, this car cannot run for long distances owing to the issues of charging and insufficient presence

of charging points, it is primarily used for short distance travelling.

Hence we will be focusing mainly on the urban and semi-urban areas.

Psychographic Segmentation:

Using the VALS method, we have identified three categories, to whom we will be targeting the car.

They are as follows:

Innovators Successfulsophisticated and receptive to new technologies. Their

purchases reflect cultivated tastes for upscale products

Thinkers Educated, conservative, practical consumers who value knowledge and

responsibility. They look for durability, functionality and value.

Experiencers Young, enthusiastic and impulsive consumers who seek for variety and

excitement and spend substantially on fashion, entertainment and socializing.

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Targeting:

Based on the segmentation, we have decided to target 3 segments. Each segment puts emphasis on

different aspects of benefits as compared to the other segments. For example: A young customer would

be more focused on the looks and the futuristic attributes provided by Reva whereas the main concern

for an old couple would be ease of driving and safety. Let us look at the following table to get a better

understanding.

Positioning:

We are going to position the car on the basis of:

Product Attributes:

There are multiple benefits that are provided by Mahindra Reva E2O right from augmented applications

to self feeding technology to revive itself. However, we are going to position the car on the basis of

two things:

Convenience - Automatic Gear, Short Turning Radius, Hill Hold, Reverse Camera, Keyless

Start/Stop

Cost Effective - Automatic Gear, Short Turning Radius, Hill Hold, Reverse Camera, Keyless

Start/Stop, Reduced car price ( Reduced the car price by giving the battery on hire and taking

away the ownership)

On the whole, it would be positioned as a luxury electric car that is very cost effective (no fuel charges)

and also convenient to drive that would help the person owning it to boost their self-esteem and status

symbol.

SEGMENT 1 SEGMENT 2 SEGMENT 3

Age 25-30 36-50 51-65

Income 5,00,000-10,00,000 6,00,000-12,00,000 6,00,000-15,00,000

Gender Male & Female Male & Female Male & Female

LifestyleFun Loving, Trendy,

Career-orientedMatured, Family-oriented Health conscious, Retired

Culture Conserve Nature, Tech

Savvy

Workaholic, Provide for

family, moderate

knowledge about the new

technologies

Spends more time for

themselves,

Highly unaware of the

latest technologies

BenefitsFeature rich car with

conservation of

environment and energy

A car that can help them

move throughout the city

quickly and easily without

burning their pockets.

Safety for their children.

A safe car with ease of

driving

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5. Integrated Marketing Communication Objective (DAGMAR)

AWARENESS- 80%

Develop Brand Awareness:

The main and primary objective of our IMC campaign is to increase the brand awareness

through various media channels. Since awareness for the car is very minimal and the reach

towards the target segment is really low. Sales, recognition, recall are the resultant function of

brand awareness.

COMPREHENSION-40%

Change In Beliefs And Attitudes:

E2O is currently portrayed to be an environmental friendly car and a car for women. This belief

has to be changed and has to be portrayed as a high tech luxury car and also as a family car.

Build Customer Traffic:

This can be done by involving customers in participating in events and online contests in order

to increase customer engagement and awareness of E2O.

CONVICTION-20%

Develop Mental Disposition:

At this stage customers are aware of the brand, its features and its benefits such as E2O being

an environment friendly car which runs on battery and about its high-tech features. The

objective here is to make the brand (E2O) a top of mind brand.

ACTION-8%

Enhance Purchase Action:

In this stage, the main objective would be to change E2O from being a top of mind brand to top of choice brand.

According to the DAGMAR approach, if brand awareness is increase by 80%, there would be 40%

increase in comprehension, 20% and 8% increase in conviction and action of purchase respectively.

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6. Selection of an Advertising Agency:

The shortlisted external ad agencies are:

-RK Ramaswammy

-JWT

-FCB-Ulka

-Leo Burnett

-Contract

-DDB Mudra

Apart from DDB Mudra, the other ad agencies mentioned above had conflict of interest against E20. RK

Ramaswammy and JWT have number of automobile client accounts whereas FCB Ulka, Leo Burnnet and

Contracts did not have domain expertise.

DDB MUDRA

The external advertising agency we have chosen is DDB MUDRA. The DDB Mudra Group is a part

of the Omnicom/DDB Worldwide Group. It is India's largest integrated marketing communications and

services network. It provides services like Advertising, Media Planning & Buying, Digital & New

Media, Data-driven Marketing, Health & Lifestyle, OOH, Retail Design and Visual Merchandising,

Navigation Solutions, Experiential Marketing (Promotions, Events, and Rural).

The reason why we chose Mudra is that they do not have direct competitors of E20 as their clients but

they do have automobile clients such as Ashok Leyland, Tata Nano and related clients such as Castrol

and shell. This would ensure that there wouldnt be any conflicts of interest. Some of the recent awards

received by DDB Mudra are from CNBC TV18-Over drive and Dignity foundation Campaign India

for their Bluetooth and Wanted/Lost/Missing ad titles respectively.

22Feet Tribal Worldwide is a subsidiary of DDB Mudra which created the web portal for engaging

people to register for test drive for E2O in Bangalore. They primarily concentrated in engaging working

professionals. The same could be implemented in other metropolitan cities such as Mumbai and Delhi

where 22feet has its presence. Since they have already understood the brand and also their works have

been shortlisted in the Cannes Lions 2014, they could be given a bigger project of E2O to be worked

on.

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7. Creative Brief

The different component of the creative brief are as follows:

The Objective:

The main objective is to reposition the brand to different market segments as not just an electric car but

as a symbol of status. In order to do so, we need to create the brand awareness, improve the brand

image and personality and also promote all the benefits and features of the car.

The Target Audience:

As discussed in the STP, we have identified three target segments. Let us have a detailed look at the

target market.

Men and women aged between 25-35 years who are educated and are also working

professionals-

Who are concerned about environment

Primarily based in urban or semi-urban areas

Who are interested in feature rich products

Tech Savvy

Who have fun loving, caring personalities

Who puts importance on cutting down costs.

Men and women aged between 36-50 years who are educated, working and runs a family-

Who are highly concerned about travelling quickly through the urban traffics

Puts a lot of emphasis on their family

Safety for their children

They also put a lot of importance in reliability, efficiency and quality

Men and women aged between 51-65 years who are educated, may or may not run a family and

also may or may not be retired-

Put a lot of emphasis on the ease of driving

Put a lot of emphasis on safety aspects

Not concerned about the new and complex technologies

Wants a relaxing experience while driving

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Since, we have targeted 3 segments, hence we have also designed 3 different ads to address to each of

these segments.

The Message Theme:

USP:

It is an environment friendly electric car that runs on battery and needs no fuel. It is an

expensive car that will reflect luxury and will help in fulfilling not only the ego needs

but also the self-fulfillment needs (as per Maslows Hierarchy of Needs) as the person

owning it would not only be proud of owning the car but would also feel that he has

fulfilled his self-actualization needs by helping the environment.

We have devised the tagline Be the Natures Knight! to pinpoint and emphasize on

that, they can be a knight in the shining armour and save the nature.

Appeals:

Fear Appeal Destruction of nature and environment, Break Ecological Balance

Emotional Appeal Do you want to leave your future generation a pile of dust and

rubble? OR do you want to create a safe and beautiful world for them?

These two appeals will be used for the TV ads.

Rational Appeal Information about the features and benefits offered by the car. It

would be an Ad with a balanced combination of Right Brain and Left Brain appeal.

This appeal will be used for the Print ads in the newspapers.

Support:

Mahindra Reva (e20) has won multiple awards from different bodies. These awards can be used as a

seal of trust. Some of the awards received are as follows:

Fast Company Award - 22nd most Innovative company in the world 2013

BBC Top Gear Man of the Year 2013 - ChetanMaini

CII Design Excellence Award 2013

Focus.it Innovation Award 2013

e2o Green car of the year Award 2013

AIMA, Managing India Awards Entrepreneur of the year 2010

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Total Fuel Saved Meter:

This is the total fuel saved meter. This is displayed in the Mahindra Reva E2O website. The Reva uses

a mobile app which has a calculator embedded in it. It automatically calculates how much fuel a person

saves by driving the car and then the data is uploaded to their server, where all the data is collected and

consolidated and then shown in the meter. It can act as a support to promote healthy, fuel saving and a

pollution free environment through the use of Reva.

Constraints:

High Tax Rates- The Govt. has imposed high taxation on the raw materials required to

build a car as Reva like solar panels, electric engine parts etc. The Environment Minister

should take the rising levels of pollution and carbon monoxide into consideration and

promote the production of these cars by allowing some tax rebate.

No Subsidies/Initiatives by the Govt. Until 2012, Govt. provided subsidy of 1 lac

rupees on the manufacturing of electric cars. That helped Reva to boost its sales, as it

could transpire the subsidy to the end customer in the form of reduced price. More such

initiatives should be taken to boost sales of eco-friendly cars like these.

Not enough Charging Points - More and more charging points should be built, so that

it can allow the customers to charge their vehicle on the run. Mahindra can look to

partner with electricity providers to build charging points in and around the city.

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8. Media Planning:

In order to promote our brand, Mahindra Reva E2O will be using various promotional activities through

various media. Media Planning involves a detailed planning of how and when each medium will be

used.

Digital Marketing:

1. Social Media Marketing: It is the process of gaining website traffic or attention thorugh

social media sites. So we will be promoting Mahindra Reva E2O over various social media

sites like Facebook, Twitter, and LinkedIn, YouTube etc. as it is the fastest mode to reach

and engage with the customers through continuous interaction. YouTube will be used as a

medium to advertise Reva.

2. Online Events: Online events will also be used to increase the customer reach. We will be

organizing contests on Facebook and Twitter in which participant will be asked to come up

with a tagline which goes with the image of the brand and best describes the brand in terms

of being eco-friendly and a symbol of luxury. The best tagline will be awarded with a dinner

date with our brand ambassador and top 100 participants will be given Reva merchandise

as consolation prizes.

Advertisements:

1. TV Advertisements:

Since we have targeted three segments, the youth, the middle aged family persons and the old

couples, we have decided to promote Reva with the help of three different ads targeted at each

of the segment.

Rahul Dravid (source factor) is chosen as the brand ambassador, as he is a prominent youth

icon, he will also be a good portrayal of the middle aged family person.

In the first advertisement, we will create an association with the brand and the idea is to make

people aware of the slowly declining environment and how Reva can help them to be a part of

the efforts to change the environment for the betterment. We will be using the fear appeal for

this ad. Dravid will open the ad by pointing out the decaying environmental conditions and ask

the viewers if they want to leave this behind for their future generations then Dravid will come

with another female model and introduce Reva and describe how Reva being a cost effective

car will help in restoring the environment. This ad will be shown during the prime time in some

of the most popular media vehicles both in sports, music and business news channels such as

STAR SPORTS1, ESPN, M TV, CHANNEL V, CNBC TV18and NDTV PROFIT. This ad will

be used mainly to target the youth.

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The second ad will be targeting the family audience. Here Dravid will be seen promoting the

car in terms of cost effectiveness, eco friendliness and convenience. Here Dravid will be seen

driving with his family (wife and kids) effortlessly through a crowded city traffic thus

emphasizing the related attributes such as short turning radius and high torque. Kids will be

seen with the inbuilt child safety gears around him thus reflecting the safety of the family. This

ad will be shown in STAR PLUS, SONY and ZEE TV to target the family audience during the

8 PM to 11 PM.

The third ad will be used to target the third segment which is the old couples segment. Here

Dravid and his family welcomes their parents who arrive in their respective Revas. The old

couples will be seen driving through the city with ease where features like automatic gear

system and dent free body will be highlighted as they reach Dravids home where they will be

celebrating and promoting a happy, healthy, noise and pollution free Diwali. This ad will be

shown throughout the day in all the above mentioned channels from 15 days before Diwali as

part of Diwali promotions.

2. Radio: It is a medium which is mainly used to promote products with certain discounts

associated with it. So during the month of Diwali we will be promoting Reva on four different

channels with ten ads daily highlighting the limited period discount offer for the occasion of

Diwali.

3. Print Advertisements: We will be promoting Reva through different newspapers with full

page. We will be using Times of India, The Hindu, and Deccan Chronicle for this purpose

giving ads 5 times in each of the newspaper for the period of 3 months. We will be using the

rational appeal where Rahul Dravid will be seen showing the car and each of the features

(mobile application use, safety, cost efficiency, car features, etc.) will be clearly mentioned

through the labels on the picture of the car shown in the ad.

Mobile Application:

We will also be using a mobile game to promote Reva as this helps greatly engage the customers and

build awareness. This games will be built on a premise where the initial world will be shown as

completely devastated by pollution and global warming. Thw SUVs and sports cars will be seen

running on the roads and leaving behind carbon foot prints in the form of monsters now the player starts

the game by driving Reva and consuming all the smoke monsters and using the power of sun to shoot

out solar energy to destroy the smoke and the chemicals. The car can get powers as the levels go through

and finally achieve the bright, beautiful and a pollution free environment to complete the

game.IndiaGames will be hired to develop this game.

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Events:

We will be organizing an array of events as part of promotional activities, they are as follows:

We will be organizing a lottery in the upcoming car expos where visitors will be asked to fill

up their details in the registration form and drop the counterpart in the lottery bowl. The lottery

will be conducted on the last day of the expo where winners will be announced publicly. This

will be conducted in the four metros and different prizes will be given to the winners.

Champions League T20 will be used as a platform to promote Reva. We will be sponsoring the

cash reward for the Man of the Match and the Man of the Series winners as well as a car for the

Man of the Series. We will also be promoting in the channels showing the T20 through flash

ads.

We will be collaborating with Fab India to organize fashion events throughout India in different

malls. The customers will be notified through social media websites to get registered for the

event as participants by submitting their portfolio. This will greatly enhance customer

engagement and image of the brand.

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9. Communication Budget:

We have selected the Objective and Task method for our communication budgeting. This method

involves listing out all the communication objectives throughout the year and calculating the cost of

accomplishing each objective. The communication budget represents the cumulative sum of the

estimated cost for all objectives. In our case the communication will be running for a period of 3

months. Hence, we have calculated the budget accordingly:

Selecting an Agency Choosing a Brand Ambassador Advertisements Events Digital Marketing Gaming Application Development

Selection of the Ad Agency:

We have selected DDB Mudra as the advertising agency for Mahindra Reva and we have allocated a

cost of INR 5 crores for the production of all the advertisements in different media.

Choosing Brand Ambassador:

We have chosen Rahul Dravid as the Brand Ambassador for promoting Mahindra Reva, costing INR 7

crores per year.

Digital Media:

In-House Advertising

YouTube Advertising Rates: INR 2500* 60* 90

Radio:

We are promoting it for an span of 1 month (On four Different Radio channels), Promotional offers

Price Rates: INR 1000* 10 * 30* 4

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Print Ads:

We are doing the promotion in different newspapers for five days, three days at the time of Diwali

celebration and two times normally in span of three months i.e. why we have multiplied it by 5.

Price Rate The Times Of India INR 1.5 Crores per day * 5

The Economic Times INR 1 Crore per day * 5

The Hindu INR 80 Lakhs per day* 5

The Deccan Chronicle INR 75 Lakhs per day * 5

TV Advertising:

We are doing the promotion on television for two times in a day (prime time) when corporate people

watches more the business news channel, when family watches entertainment channels and

respectively.

Business Channels: CNBC TV 18 INR 1982* 2* 60

NDTV Profit INR 990* 2* 60

Entertainment Channels: Star Plus INR 54390*2*50

Sony INR 16730*2*50

Zee TV INR 36814*2*50

Music Channels: MTV INR 1072*2*5

Channel V INR 991*2*50

Sports Channels: Star Sports 1 INR 15, 00,000* 10

ESPN INR 10, 00,000* 10

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Events:

The Event Management Company we have chosen is Wizcraft International Entertainment Pvt.

Ltd. for organizing an events at different places (e.g. in malls, In Corporate companies). The

event management company will organize different types of contests for Mahindra Reva.

Wiz craft International (Cost) - INR 5, 00,000 * 4

Lottery at Car Expo:

1st Price: E20

(Pan India Basis- Only one is to be given)

INR 4, 80,000- 6, 80,000

2nd Price: International Trip * 20 - INR 25,000* 20

3rd Price: Free 1 Year Car Insurance* 30 INR 10,000* 30

CLT20:

Fashion Show:

Production Cost - INR 10, 00,000 * 4

Man of the Match and Man of the Series Awards

INR 40,00,000

Flash Ads INR 60,00,000

Sponsorship Costs INR 20,000,000

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Online Contest:

1st Price: Spend a day with our Brand Ambassador.

Price Rates: INR 1, 00,000 IN 1, 50,000(Approx.)

Consolation Price: Merchandise (Contract with the manufacturing company).

(Top 100 contestants)

Price Charges: INR 10, 00,000

Social Media:

The maintenance of the multiple social media sites and search engine optimization will be done

organically. So, the only additional cost incurred will be for the keywords here which varies from INR

500 to INR 5000 (CPC basis) generally for each keyword.

Gaming Application Development:

We have chosen INDIAGAMES for making the gaming application for Mahindra Reva on Android,

Windows and iOS platforms.

Dynamic apps generally average from INR 7, 20,000.00 INR 1800000.00 (per platform) depending

on the complexity, though as you add in more features and functionality, the cost will typically increase

as well.

We have estimated the price range to develop our game for MAHINDRA REVA as

INR 8, 00,000 to INR 10, 00,000 (Approximately)

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Total Budget:

COST(INR) TOTAL COST(INR)

SELECTING AN AGENCY 50000000 50000000

CHOSSING BRAND

AMBASSADOR

70000000 70000000

RADIO ADVERTISING 1000*10*30*4 1200000

PRINT ADS 40000000*5 200000000

TV ADVERTISING:

1)Business News Channels

2)Serials Channels

3)Music Channels

4)Sports Channels

1982*2*60+ 990*2*60

54390*2*50+ 16730*2*50+

36814*2*50

1072*2*50+ 991*2*50

10,00,000*10+15,00,000*10

32,674,940

LOTTERY COST

WIZCRAFT CHARGES

FASHION SHOW CHARGES

CLT20 CHARGES

6,50,000+ 25,000*20+ 10,000*30

5,00,000*4

10,00,000*4

30,000,000

37,450,000

DIGITAL MARKETING 1,50,000+ 10,00,000 1150000

GAMING APPLICATION

DEVELOPMENT

10,00,000 1000000

YOUTUBE ADVERTISING 2500*60*90 13,500,000

MISCELLANEOUS 43,025,060

TOTAL COST 45,000,0000